Opinion
04-18-1939
SLADE BROS., Inc. v. EAGLE'S MEAT & POULTRY MARKET.
Morris M. Ravin, of Newark, for complainant. David Castelbaum, of Newark, for defendant.
Syllabus by the Court.
Receiver for a corporation admittedly insolvent will not be appointed by the court in the exercise of its discretion where it appears that the ultimate result of such appointment will be a sacrifice of the assets of the corporation due to the cost and expense of such receivership.
Bill for appointment of a receiver for an insolvent corporation by Slade Bros., Inc., against Eagle's Meat & Poultry Market.
Appointment of receiver denied.
Morris M. Ravin, of Newark, for complainant.
David Castelbaum, of Newark, for defendant.
STEIN, Vice Chancellor.
Complainant alleges a debt due him of $266.24. The bill is before me with notice of an application for the appointment of a receiver and answer on the part of the defendant corporation admitting insolvency.
The bill alleges that the assets of the corporation (consisting of fixtures in a meat market) are of an approximate value of $1,000, and that there is due the landlord the sum of $300 for rent for which he threatens to distrain and taxes due the City of Newark in the sum of $120, without interest.
The purpose of the statute, R.S. 1937, 14:14-3, which is the preservation of the interest of the stockholders and creditors would not be accomplished by the appointment of a receiver herein. Such appointment would only add an additional burden upon the estate and tend to eat up the available assets. Glaser v. Achtel-Stetter's Restaurant, 106 N.J.Eq. 150, 149 A. 44.
Exercising the discretion residing in the court, the appointment of a receiver is denied.